China Releases Mintz Group Employees After Nearly Two Years in Detention

China has released five local employees of the U.S.-based due diligence firm Mintz Group, who had been detained for nearly two years following a crackdown on foreign consultancies. The release of the employees marks the end of a prolonged period of uncertainty for the company, which was forced to cease its operations in Beijing in 2023.

Mintz Group, headquartered in New York, specializes in conducting investigations into fraud, corruption, and workplace misconduct, as well as performing background checks. The five employees, all Chinese nationals, were detained by Chinese authorities in March 2023 during a sweeping raid of Mintz’s Beijing office. At the time, the Chinese government accused the firm of “illegal operations,” though no further details were provided.

“We understand that the Mintz Group Beijing employees who were detained, all Chinese nationals, have now all been released,” a Mintz spokesperson told AFP in a statement. “We are grateful to the Chinese authorities that our former colleagues can now be home with their families.”

The detentions were part of a larger crackdown on foreign consultancies and due diligence firms operating in China, including other high-profile targets such as Bain & Company and Capvision Partners. The timing of the raids, just before a major economic forum, raised concerns about Beijing’s increasingly stringent approach to foreign firms operating in the country.

Mintz Group had previously reported that its work in China included investigating potential links to forced labor in supply chains tied to the Xinjiang region, which may have contributed to the firm’s detention. In addition to the detentions, Mintz was fined $1.5 million later in 2023 for conducting “unapproved statistical work” in China.

The release of the Mintz employees comes as China seeks to restore confidence in its economy and attract more foreign investment, which has seen a sharp decline. Official data showed that foreign direct investment in China plummeted by 27.1% in 2024, the largest drop since the 2008 global financial crisis. This economic downturn prompted Chinese officials to engage in a charm offensive with foreign business leaders at the China Development Forum, where prominent figures such as Apple’s Tim Cook and Pfizer’s Albert Bourla attended.

The forum, which concluded this week, was used by Chinese leaders, including Vice Premier He Lifeng, to reassure foreign investors of China’s commitment to economic openness. He emphasized that China remains “unswerving” in its efforts to welcome multinational corporations and provide development opportunities, despite rising global uncertainty and protectionism.

The return of Mintz’s employees is seen as a positive step in restoring some level of trust between China and international businesses. However, analysts warn that continued concerns over national security and Beijing’s regulatory environment could deter future foreign investments.

Mintz Group operates 12 offices globally and employs over 280 investigators, providing services to firms around the world. The company’s ability to resume operations in China remains uncertain, following the forced closure of its offices in Beijing and Hong Kong in the aftermath of the detentions.